Non-Governmental Organisations are a critical aspect of contemporary concepts of international governance. Their aims and objectives are diverse and entwined, some NGO’s are professional bodies where as others such as Friends of the Earth International and Greenpeace International are campaigning organizations advocating particular courses of action they and many others believe global societies should adopt. Many NGO’s are purely national; others regional yet others are fully international. Most of the major international environmental NGO’s are based in northern hemisphere developed states, but national NGO’s are also beginning to play an important part in some developing countries. As identified NGO’s are seen to benefit developing countries such as Ruralia, however at this time the Prime Minster of Ruralia believes to of received claims from then directly concerning the WTO regime is detrimental to the states economies policy. The usefulness of NGO’s depend on their seriousness of purpose, funding, depth of research, skills in political advocacy, means of exercising pressure and narrowness of focus and they have increasingly networked their activities by meeting to co-ordinate their policies and actions.
Each member state has a responsibility to adhere to International Law and so they are able to make a claim to the ICJ or International Arbitral Tribunals for the claims made by NGO’s. Alternatively states may use diplomatic means to press claims and negotiate settlements. It is important to note that we are not concerned with the conduct of individuals but with states themselves and in particular with their obligations of due diligence. The state is in this sense a guarantor of private conduct, but its responsibility is direct, not vicarious.
As a member of the WTO, the GATT Dispute Settlement Mechanism’s original intention was for GATT to be placed in the institutional settlement procedure that contemplated effective use of arbitration (not always mandatory, however) and even appeal to the World Court in some circumstances. The WTO has the responsibility for implementing and enforcing international rules regulating (as agreements) trade between nations. This includes the GATT, General Agreement on Tariffs and Trade which ultimately is to help trade flow freely as possible, to achieve further liberalization gradually through negotiation and to set up an impartial means of settling disputes. The Dispute Settlement Process is governed by the Understanding on Rules and Procedures Governing the Settlement of Disputes agreement which is applied to all WTO/GATT policies.
The Dispute Settlement Understanding (from the Dispute Settlement Body) is designed to encourage member states to resolve disputes through conciliation with each other. The second member is required to enter into consultation within a period of 30 days of the matter arising, should the member not do so they requesting member can seek to establish a hearing at the WTO Dispute Settlement Panel. The Dispute Settlement Body is effectively the WTO General Council convened under its own Chairman and following its own rules of procedure. The panel is responsible for establishing panels, adopting their reports and those of the Appellate Body which monitor rulings and recommendations and authorise the suspension of concessions and other obligations in appropriate cases.
The WTO overseas the implementation, administration and operations of the ‘Multilateral Trade Agreements’ which are legally binding upon its members. It has legal personality and has privileges and immunities similar to those of specialized agency of the United Nations.
As a member of the WTO Ruralia would have to agree to the regulations of trade set by the GATT/WTO. These rules are compulsory that Ruralia adhere to them should they sustain membership. These rules in place are also potential benefits to developing countries such as Ruralia in action they can take depending on the action proposed from other countries.
General of Most-Favoured-Nation Treatment Article I of GATT, is applied by each member to the imports and exports of all other countries. This states that Ruralia will have the same rights as a developing country as any other developing county in the WTO as well as highly established countries. This is advantageous to Ruralia as in all trade negotiations all countries will have the same rights and responsibilities as any other which will avoid any bullying from more developed countries trying to take control and secure a better trade deals. Government Assistance to Economic Development Article XVIII, permits developing countries to alter or withdraw tariff concessions by agreement with parties affected and after efforts to provide compensatory concessions. Developing countries are the primary concern in this agreement which will allow countries like Ruralia to establish trade deals to further develop their economy. The nature of this article from GATT should also be noted that it is likely to negate the potential claims that have risen regarding the Non-Governmental Organisations. Emergency Action on Imports of Particular Products Article XIX. The escape clause of the General Agreement authorizes the importing country to suspend, withdraw or modify tariff concessions if increased imports threaten serious injury to domestic producers. Ruralia can omit its obligations to the GATT if it is identified there is a significant rise in imports in their domestic market, in which these imports harm domestic producers of competitive products. Ruralia is legally empowered to protect on a temporary basis its producers by enforcing restrictions on their domestic trade - their GATT obligations are therefore ceased thereof. Should this situation arise Ruralia would be required by agreement to compensate the exporting country by allowing trade concessions in other areas.
GATT policy of Regional Integration promotes international trade through regional economic integration. With WTO membership GATT encourages members to participate in free trade areas (groups of states that have reduced tariffs between themselves but who maintain their own tariffs for all other states) and customs unions (state groups who eliminate tariffs between themselves and have established a common tariff for all remaining WTO states. This would give great opportunity to Ruralia to integrate trade with other members which would not affect the their most vital sector.
FDI is a firm based in one country (the 'home country') owning 10 percent or more of the stock of a company located in a foreign country (the 'host country') -- this amount of stock is generally enough to give the home country firm significant control rights over the host country firm. Most FDI is in wholly-owned or nearly wholly-owned subsidiaries. Other non-equity forms of FDI include: subcontracting, management contracts, franchising, and licensing and product sharing. Foreign investment into the Ruralia’s sugar cane industry is a legal and viable trade option. According to GATT agreements which protect domestic markets Ruralia can use protection through tariff increases, which is GATT second major principle and can be enforced to restrict trade to certain WTO members in order to protect the sugar cane industry and maintain levels of this domestic commodity.
Sugar cane originated on the island of New Guinea in the South Pacific and was widely used in ancient India. The Arabs brought the plant to medieval Spain and the first Spanish explorers carried it to the New World. It’s production also greatly influenced the modern history of many tropical Pacific islands, most particularly the Hawaiian Islands and Fiji. In these islands, sugar came to dominate the economic and political landscape after the indigenous societies were invaded by Europeans and Americans. The Europeans and Americans also promoted immigration from various Asian countries for workers to tend and harvest the crop. Sugar-industry policies eventually established the ethnic makeup of the island populations that now exist, profoundly affecting modern politics and society in the islands.
Brazil is a major grower of sugar cane where it is used to produce sugar as well as to provide the alcohol used in making gasohol and biodiesel fuels. About 107 countries grow the crop to produce 1,324 million tonnes (more than 6 times the amount of sugar beet produced). The largest producers are Brazil, India, and China, accounting for more than 50% of world production.
An agreement from the GATT that impinges the Protection Through Tariffs (PTT) is the Bound Tariff Rate. This is a measure which represents the highest rate that a WTO member state may set on any unit of sugar cane. Although the PTT is to protect Ruralia in balancing its trade distribution and allow it to request for trade premiums when required, BTR is to avoid Ruralia from extorting trade members in demand excessive premiums where the WTO feels unfair to do so.
Through cooperate with WTO, The International Monetary Fund (IMF) and the World Bank (WB) greater coherence in global economic policy is of the making. The World Bank (The International Bank for Reconstruction & Development) was established in conjunction with the International Monetary Fund and is the world’s largest provider of development assistance to developing countries such as Ruralia by providing over 20 billion dollars in new loans every year. With the coherence from the IMF, WTO and World Bank, there is a significant level of opportunity for Ruralia to receive grants and secure funding for projects within Ruralia which will assist to support the economic development of Ruralia and protect it’s commodity markets, namely sugar cane.
A facility available to Ruralia as it is a developing country is it has the opportunity to take advantage of preshipment inspections. Preshipment Inspection is a process of checking the cargo of trading goods to prevent over or under-invoicing as well to avoid fraud related issues, so to prevent the loss of capital and customs duty evasion. This preshipment inspection agreement allows Ruralia to take on WTO authority and responsibility as a developing countries to make use of but impose limits on its use. The agreement requires certain obligations to withstand. These take the form of ensuring that their laws and regulations relating to PSI conduct are applied nondiscriminatorily and transparently. Legally Ruralia would be required to provide technical assistance to other member states you are conducting PSI trade with as too should any disputes arise regarding Preshipment Inspection between Ruralia and an importing country then any serious issues can be brought to the attention of an independent review board that appoints a panel of three trade experts who will be appointed to review and decide the matters outcome. This panel’s decision will be binding to Ruralia and the PSI party.
Conclusion / Recommendations
To further advise on this situation access would be required to any material which identifies the claims that the NGO’s are establishing and as too which NGO have made contact and are making these claims. Details on the adopting policies referred to would also be a requirement for submission.
A) Detailing the adoption policies mentioned
B) Significant details regarding how you see them at risk from membership at the WTO.
Further advisory measures can be given to Prime Minster, Ruralia when all information from all sides are collated. This will prevent any unnecessary measures being taken which may result in legal action taken against Ruralia, should we act promptly.
Adoption policies that are vital to economic sector are not necessarily required to be of a financial stance. Significantly important policies include non-economic policies such as terrorism prevention and national security measures.
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Bibliography
Birnie, P.W and Boyle, A.E, (2002) International Law and the Environment, Second Edition, Oxford University Press
August, R, (2004) International Business Law – Text, Cases and Readings, Fourth Edition, International Edition
The International Court of Justice -
Jackson, J H, ((1997)2000) The World Trading System – Law and Policy of International Economic Relations, Second Edition, MIT Press
From GATT to WTO and Beyond -
Litka, Michael P. & Blodget, Mark S., (1995) International Dimensions Of The Legal Environment Of Business, Cincinnati, Ohio : South-Western College Pub
O’Brien J (2002), International Law, London, Cavendish
- www.ejil.org/journal/Vol11/No2/ab11.html
ITO, Chapter VIII, Articles 92-97, UN Financial Act and Related Documents, UN Confernence on Trade and Employment.
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Sugar Cane Industry -
Sugar Cane -
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References
International Court of Justice Report (1997), 7, at para 140
Birnie, P.W and Boyle, A.E, (2002) International Law and the Environment, Second
Edition, Oxford University Press p66
Birnie, P.W and Boyle, A.E, (2002) International Law and the Environment, Second
Edition, Oxford University Press p67
See charter of the ITO, Chapter VIII, Articles 92-97, UN Financial Act and Related Documents, UN Confernence on Trade and Employment.
August, R, (2004) International Business Law – Text, Cases and Readings, Fourth
Edition, International Edition
August, R, (2004) International Business Law – Text, Cases and Readings, Fourth Edition, International Edition p360
